Barney’s Antique Shop has annual credit sales of $1,620,000 and an accounts receivable balance of $157,500. Calculate the average collection period (use 360 days in a year).
Solution:
Barney’s Antique Shop (Continued)
Average collection period= (xxx)/(xxx)
Average dialy credit sales= (xxxxx)/xxx= $ x, xxx, xxx/xxx=$ x, xxx
Therefore, the average collection period= $xxx, xxx/$x, xxx
=xx days
Click on the WhatsApp button below or Scan the Code and text us to get a complete solution to the question above.
